Modified-gross with op-ex escalations over a base year.

  • Typical lease length: 10 years.
  • Typical rent-free: 22 months.
  • Vacancy: 24.5%; trend flat.
  • Modified-gross with op-ex escalations over a base year.

Chicago office lease norms

Modified-gross with op-ex escalations over a base year.

TL;DR

  • Typical lease length: 10 years.
  • Typical rent-free: 22 months.
  • Vacancy: 24.5%; trend flat.
  • Modified-gross with op-ex escalations over a base year.

Structure

Modified-gross with op-ex escalations over a base year. Rent-free 18-30 months and TI $120-$200/sqft on a 10-year term are current market.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

cityChicago
countryUnited States
regionAmericas
classARentLocal52 USD/sqft/yr
classARentUsd$52/sqft/yr
vacancy24.5%
typicalLeaseYears10
typicalRentFreeMonths22
submarkets6
primeYieldPct7%

Frequently asked questions

What's a typical lease term in Chicago?
10 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in Chicago?
In USD/sqft/year. We also publish a USD-normalised view ($52/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

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